TSMC shares return to prior ex-dividend level upon opening

Taipei, March 18 (CNA) Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) returned to their prior ex-dividend level soon after the market opened Tuesday, the ex-dividend date for the stock, driving a rebound on the broader market.

As soon as the market opened, TSMC shares rose to NT$976.00 (US$29.58), up from the opening reference price of NT$965.00, which had been cut by NT$4.50, the dividend paid to shareholders on earnings in the third quarter of 2024.

The stock rose further to a high of NT$978.00 early in the session.

The gains came after TSMC's American depositary receipts rose 1.24 percent in the United States overnight as U.S. markets moved higher on hopes that the Federal Reserve will cut interest rates after a lower-than-expected increase in February retail sales, dealers said.

For companies in Taiwan that issue cash dividends annually, the ex-dividend date is the date on which a stock begins trading after the cash dividend to be paid out on the previous year's earnings has been deducted.

TSMC started to issue cash dividends quarterly instead of annually in 2019.

When stocks like TSMC return to their prior ex-dividend levels, it indicates investors have faith in their fundamentals and are willing to hold onto them.

After returning to its prior ex-dividend level, TSMC shares retreated slightly amid lingering worries over uncertainties posed by the Trump administration's tariff policies, analysts said.

As of 11:56 a.m., TSMC shares had risen 0.41 percent to NT$969.00, while the weighted index on the Taiwan Stock Exchange had gained 0.53 percent to NT$22,236.07.

TSMC is scheduled to issue about NT$116.70 billion in cash dividends on April 10 after the ex-dividend date.

TSMC Chairman C.C. Wei (魏哲家), who has 6.39 million TSMC shares, is expected to pocket NT$28.76 million.

The National Development Fund under the Executive Yuan, TSMC's largest shareholder with 1.65 billion shares, is expected to receive NT$7.44 billion.